A Gold IRA is a self-directed Individual Retirement Account that holds physical precious metals — gold, silver, platinum, or palladium — instead of (or alongside) stocks and bonds. It follows the same tax rules as a traditional or Roth IRA; the difference is what the account is allowed to hold.
The Rule That Actually Matters: IRC §408(m)
The IRS treats most "collectibles" held in an IRA as an immediate taxable distribution. Section 408(m)(3) carves out an exception for specific gold, silver, platinum, and palladium coins and bars that meet minimum fineness standards — provided they're held by a bank or an IRS-approved non-bank trustee/custodian, not by you personally. That last part is not a technicality: the U.S. Tax Court's 2021 McNulty v. Commissioner decision confirmed that "home storage" or "checkbook control" arrangements can void the entire tax advantage and trigger a full taxable distribution, plus penalties. There is no such thing as an IRS-compliant home-storage Gold IRA.
What "IRA-Eligible" Actually Means
No dealer or product line is "IRS-approved." What's approved is a purity standard: generally .995+ fine for gold (with a specific statutory exception for American Eagle coins at .9167 fine), .999+ for silver, and .9995+ for platinum and palladium. A dealer can accurately say a specific coin or bar meets IRA fineness requirements — not that the IRS endorses the dealer. See our product lineup for which of the Mint's current coin programs meet each threshold.
Where the Metal Actually Lives
"IRS-approved depository" isn't a marketing phrase — it's a specific type of vault facility that meets the custody requirement in IRC §408(m)(3)(B). A handful of firms operate the vaults most self-directed IRA custodians actually use.
Delaware Depository is one of the most widely used. Founded in 1999 and headquartered in Wilmington, Delaware (with an additional vault in Nevada), it's a licensed depository of CME Group for gold, silver, platinum, and palladium, stores metal in UL-rated vaults under 24/7 surveillance, and undergoes independent SSAE-18 SOC-1 audits of its security and custody procedures. It doesn't sell metal directly to individuals — it's a storage facility that IRA custodians and dealers direct metal to, via insured armored carrier, on a client's behalf.
Delaware Depository is one example among several IRS-approved facilities, not the only one, and not an American Wealth Group affiliate or partner — we'll confirm the specific custodian and depository used for your account before you commit to anything.
Direct vs. Indirect Rollover
- Direct (trustee-to-trustee): your existing custodian sends funds straight to the new IRA custodian. No withholding, no deadline, no risk.
- Indirect: you receive the funds yourself first. Your old custodian must withhold 20% for federal tax, and you have 60 days to deposit the full original amount — including the withheld 20%, from other funds — or the shortfall becomes a taxable distribution, plus a 10% early-withdrawal penalty if you're under 59½.
We recommend a direct rollover by default and will walk you through the indirect-rollover mechanics clearly if that's the only path available to you.
Three Questions Worth Asking Any Precious Metals Dealer
- What is the markup over spot price, in writing, before I buy? (Reasonable industry spreads run under roughly 20%; regulators have specifically flagged 100%+ markups as a fraud signal.)
- Who is the actual custodian and depository, and are they IRS-approved?
- Is anyone on this call a licensed investment adviser, or are they a sales representative? That distinction changes what kind of guidance they're legally allowed to give you.